In a significant diplomatic breakthrough, recent U.S.-Pakistan trade negotiations have gained momentum following the high-profile visit of Pakistan’s Chief of Army Staff, Field Marshal Syed Asim Munir, to Washington. According to a report by Bloomberg, Munir was given an extraordinary reception at the White House last month, signaling a thaw in bilateral relations and a renewed strategic partnership.
The visit, seen as a pivotal moment in Islamabad-Washington ties, has been followed by a series of encouraging developments. Among them, Pakistan’s surprise recommendation of former President Donald Trump for the Nobel Peace Prize, and the signing of a Memorandum of Understanding (MoU) in April between the Trump family’s World Liberty Financial and Pakistani stakeholders.
On the economic front, Pakistan’s Finance Minister Muhammad Aurangzeb is actively engaged in trade negotiations with U.S. officials. Islamabad is aiming to finalise a deal by the August deadline, and hopes to address U.S. concerns listed in a detailed trade requirements document that outlines necessary tariff reductions and the easing of non-tariff barriers.
The Pakistani Ministry of Finance has confirmed “encouraging progress” in these negotiations, as the country seeks relief from the 29% tariffs currently levied on key exports. Despite slower-than-expected talks, both sides remain optimistic. Pakistan had originally hoped to seal the deal by early July.
Trade figures show the U.S. remains Pakistan’s largest export market, with a bilateral trade deficit of around $3 billion. Pakistan, which ranks as the second-largest buyer of U.S. cotton in South Asia after China, has also offered to increase its imports of American cotton and soybeans, moves that align with Washington’s trade priorities.
Observers credit Field Marshal Munir’s diplomatic outreach as a key catalyst in reviving momentum in Pakistan-U.S. relations, both strategically and economically.
